Copper Squeeze Sends 38,000 Tons into LME Warehouses

Copper prices have surged due to an unprecedented supply squeeze in the London Metal Exchange (LME) warehouses. The latest figures show that over 38,000 tons of copper were added to LME warehouses within days during the recent squeeze, a major reversal from the earlier trend.

For months, copper had been leaving LME warehouses as traders sent supplies toward the United States because American prices were more attractive. However, some of that metal is now moving back toward LME warehouses, creating a strange situation where there is copper in the world but getting enough to the right place at the right time has become much harder.

The global copper market remains extremely tight, with LME stocks having fallen sharply in recent months. The market wants copper now, as evident from the huge premium being paid for immediate delivery over contracts arriving later. Copper prices have remained close to record levels as inventories outside the United States continue to look tight.